How Do I record petty cash expenses? I have just drawn cash from the bank to create a petty cash option for small purchases. Can I now record each individual purchase in QB without it affecting my overall balance?
can you clarify what you referred to overall balance?
when you purchase on credit, your inventory & accounts payable increased.
when you purchase by cash, your inventory increased and cash reduced.
You record the expenses when you replenish the fund. Write a cheque to petty cash for the amount of receipts you have. Summarize the receipts and allocate the the cheque to the appropriate expense accounts.
For my clients, I set up a Petty Cash Bank Account.
When money is withdrawn from the company bank account for petty cash, you can record it as a transfer or if you create an actual cheque, through the write cheques window and the expense account will be Petty Cash.
When you make purchases from petty cash, you can enter them through the write cheques window with Petty Cash as the bank account.
All purchases from Petty Cash will effect your Petty Cash Account Balance.
Thank you for this, I kinda like figured that was the route I needed to take but wanted to be sure before making a mistake!!!
You also answered another question for me many months ago which leads me to conclude you must really know your way around Quickbooks so I am wondering if you can shed any light on this other matter...
We are a Canadian registered charity and can reclaim some of the HST we pay on our expenses. So... when I click on a journal item to indicate the amount of the HST - the cheque screen appears - however it is defaulted to show Sterling pounds not Canadian $'s and for the life of me I cannot see how to tell QB that the currency in use is the Canadian $.
It isn't really a big issue, as we never print cheques so the sums all balance, it is just a niggle that I would like to resolve!
Many thanks once again,
David.
The currency setting is determined by the Regional Settings on your computer.
Make sure your computer is set up to Display Canada as the region.
